Parnell Investor Presentation

September 29, 2015

Ladenburg Thalman Conference

Robert Joseph BS (Med), BBus (Mkt’g), BCom (Fin), CPA

PRESIDENT AND CHIEF EXECUTIVE OFFICER

Cautionary Note Regarding Forward-Looking Statements

This presentation contains “forward-looking statements” within the meaning of the safe harbor

provisions of the U.S. Private Securities Litigation Reform Act of 1995. Words such as “may,”

“anticipate,” “estimate,” “expects,” “projects,” “intends,” “plans,” “develops,” “believes,” and

words and terms of similar substance used in connection with any discussion of future

operating or financial performance identify forward-looking statements. Forward-looking

statements represent management’s present judgment regarding future events and are subject

to a number of risk and uncertainties that could cause actual results to differ materially from

those described in the forward-looking statements. These risks include, but are not limited to,

risks and uncertainties regarding Parnell’s research and development activities, its ability to

conduct clinical trials of product candidates and the results of such trials, as well as risks and

uncertainties relating to litigation, government regulation, economic conditions, markets,

products, competition, intellectual property, services and prices, key employees, future capital

needs, dependence on third parties, and other factors, including those described in Parnell’s

Annual Report on Form 20-F filed with the Securities and Exchange Commission, or SEC, on

September 15, 2014, along with our other reports filed with the SEC. In light of these

assumptions, risks, and uncertainties, the results and events discussed in the forward-looking

statements contained in this presentation might not occur. Investors are cautioned not to place

undue reliance on the forward-looking statements, which speak only as of the date of this

presentation. Parnell is under no obligation, and expressly disclaims any obligation, to update

or alter any forward-looking statements, whether as a result of new information, future events,

or otherwise. 2

The Parnell Opportunity in Animal Healthcare:

Established Commercial Presence & Valuable Product Pipeline

Robust Pipeline with 7 Products in Development

Integrated Development, Manufacturing & Commercial Capabilities

Unique Commercialization Model Utilizing Digital Technologies

Experienced Leadership in Global Animal Healthcare with Track Record

5 Marketed Products; US Market Expansion Underway

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Parnell’s Business Strategy & Advantages

• Developed, registered, manufactured and commercialized Production and Companion Animal drugs in major markets

– 2013 US launch of Estroplan, Gonabreed in Production Animal

– 2015 US launch of Glyde in Companion Animal

• Existing, rapidly growing revenues competing against major multinational incumbents

– Revenue growth from $8m in 2014 to ~$12m in 2015 and potential to double again in 2016 (without Zydax)

• Successfully implemented an innovative commercialization strategy using Digital Technology

– FETCH and mySYNCH proving to be highly competitive differentiators

• Major advantage of having Manufacturing in-house

– Provides certainty of supply for our own products and now becoming a highly profitable source of additional revenue

• Attracting unique business development & licensing opportunities

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2015 Companion Animal Guidance Update

• Bringing Zydax® & Glyde® to Large Markets

– File Zydax in US and Europe in 2H, 2015 (potential launch in Oct, 2016)

– Launched Glyde and FETCH in USA Sep, 2015 (early trajectory is promising)

• Establish US Canine Commercial Team

– Raised an $11m non-dilutive debt facility June, 2015

– Establish sales team of 40 territory managers covering 12,000 clinics

• Considering options for launching Zydax & Glyde in non-US markets

including “own presence” vs. appointing a multinational Marketing

Partner

• Reiterate expectation of significant global sales opportunity

– Depth of data package and market experience with Zydax provide

confidence that Zydax will be uniquely positioned as a revolutionary

therapeutic for the management of osteoarthritis in dogs

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2015 Production Animal Guidance Update

• Triple digit sales growth in US Production Animal Business

– 7 territories in place, considering up to 3 more by year-end 2015

– Market share and sales growing above plan: 236% YOY growth YTD August

2015

• mySYNCH® launched at AABP, September, 2015

– Expect digital technology assets to create significant differentiation and

potential subscription service revenue streams in future

• Expect to appoint Marketing Partner for Europe (and other

geographies) in 2015 with expected launch end-2016

• Reiterate expected global peak sales opportunity for reproduction

hormones of $20m – $30m

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2015 Contract Manufacturing Guidance Update

• Close to agreeing terms on a contract manufacturing deal with a major

multinational

– Potential to expand scope of engagement

• Considering two other opportunities with other multi-nationals

• One or more of these deals will leverage our current spare capacity

(75%) and be highly profitable/accretive with multi-million revenues

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2015 R&D Pipeline Update:

• Advancing 7 Proprietary Pipeline Programs

• PAR121/122: UN Grant to develop infrastructure in the Cook Islands

for starting substrate

• PAR081: work commenced with CRO on formulation development

• Zydax extensions: Feline & Equine and Canine Comparative Mode of

Action studies

• Zydax Clinical Study investigating Durability of Effect and “Treatment

to Success” for dogs with severe OA

• Significant number of in-licensing opportunities under consideration:

– Expect to complete at least one in-licensing transaction in 2H, 2015

– Continue to focus on major companion animal markets

– Drugs/Nutraceuticals/Med-Device

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2015 Major Milestones and Catalysts

• Quarterly Investor Update: Oct, 2015

– Revenue update

– Glyde & FETCH launch in USA – early trajectory

– Zydax FDA filings update

– Contract Manufacturing Update

– Business Development Update

• Zydax Marketing Partner appointment update

• Expectations for short-term product additions

• Expectations for pipeline product additions

– R&D milestone updates

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Zydax®

- a revolutionary OA treatment -

What makes Zydax® unique?

• 8-10 Xylan units that are each FULLY sulfated

• This leads to a UNIQUE structure that:

– Inhibits Aggrecanase-1

– Significantly increases Cartilage Proteoglycan content in 21 days

– Significantly reduces Prostaglandin (pro-inflammatory) presence

– Results in HIGHLY significant clinical outcomes

• Long-lasting patent (2028)

• Sold over 1 million doses in Australia

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Only Zydax Inhibits Aggrecanase-1

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• It is well established the PRIMARY cause of degenerative joint disease

is the up-regulation of Aggrecanase-1

• In a head-to-head study against PPS, only ZYDAX was able to

substantially reduce the activity of the up-regulated destructive

enzymes present in OA

Unique Mechanism of Action

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• Displays anti-inflammatory activity by rapidly decreasing pro-

inflammatory prostaglandins

Unique Mechanism of Action

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• Restores osteoarthritic cartilage to normal in 21 days by stimulating

proteoglycan synthesis

Zydax®

- robust clinical data supports

unique market positioning -

Zydax PILOT Efficacy Clinical Trial Outcomes – Day 28

• Primary Clinical End Point - Percentage of dogs that had a >40% reduction in Pain or

Interference caused by OA after 4 injections of Zydax (Day 28)

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Zydax PILOT Efficacy Clinical Trial Outcomes – Day 70

• Durability of Effect: 61% of Zydax treated dogs still had a >33% improvement in Pain

or Interference 6 weeks after treatment with Zydax (Day 70).

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Zydax PILOT Efficacy Clinical Trial Outcomes

• Veterinarian assessed lameness at the “Trot” demonstrating long-lasting benefits of

Zydax

Zydax Pivotal Efficacy Clinical Trial Outcomes

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• Significantly more Zydax treated dogs had a reduction of 3 or more in the Activity

Impairment Score after 28 days

Zydax Pivotal Efficacy Clinical Trial Outcomes

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Visit Treatment N Mean Std Dev Min Max

Day 0 Placebo 104 9.9 1.8 7 14

Zydax 212 9.8 1.5 7 14

Day 14 (+/- 2) Placebo 103 8.5 2.3 3 14

Zydax 212 7.8 2.5 3 13

Day 28 (+/- 2) Placebo 104 7.8 2.6 3 14

Zydax 212 6.9 2.6 3 14

• Zydax Treated Dogs achieved a statistically superior improvement in Activity

Impairment Score (AIS); 3 point reduction after 28 days and 2 points after 14 days

Zydax Pivotal Efficacy Clinical Trial Outcomes

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• Secondary Outcome: early to mid-stage (mild-moderate) cohort of dogs, Zydax

demonstrated a significant improvement in clinical signs of OA; ranging from 81% of

dogs showing at least an 11% improvement and 22% showing a 56% improvement

at 28 days

Zydax®

- robust clinical data supports

unique market positioning -

The Parnell Opportunity in Animal Healthcare:

Established Commercial Presence & Valuable Product Pipeline

Robust Pipeline with 7 Products in Development

Integrated Development, Manufacturing & Commercial Capabilities

Unique Commercialization Model Utilizing Digital Technologies

Experienced Leadership in Global Animal Healthcare with Track Record

5 Marketed Products; US Market Expansion Underway

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